Nolans Bore Rare Earths Project
The Nolans Bore Rare Earths Project comprises the development of a rare earths mine and processing facilities (including beneficiation, extraction, and separation plants) 135km north of Alice Springs in the Northern Territory.
January 2024
Resources
Northern Territory
The Nolans Rare Earths Project comprises the development of a rare earths mine and processing facilities (including beneficiation, extraction, and separation plants) 135km north of Alice Springs in the Northern Territory.
Proponent Background
Arafura Rare Earths Ltd (Arafura) is an Australian resources company, with offices in Perth and Darwin. The company’s main asset is the Nolans Rare Earths Project (Nolans or the Project) in the Northern Territory.
Project Overview
The Nolans Bore Rare Earths Project will mine and process one of the world’s largest deposits of Neodymium (Nd) and Praseodymium (Pr) over a mine life of at least 23 years. The project uses a proprietary flowsheet to produce separated Nd and Pr oxides, as well as phosphoric acid as a by-product, thus improving project economics. NdPr are essential raw materials for ultra-strong permanent magnets used in the motors of electric vehicles, wind-turbine generators, smart phones and robotics.
How We Helped
Rare earths projects, such as Nolans, have faced difficulties in accessing commercial debt funding as rare earth markets are relatively opaque with a history of significant price volatility.
This is an opportunity for NAIF to support the development of a strategically important project which will mark a significant step in establishing a rare earth ecosystem in Australia. Government support of this project sends a positive message to strategically aligned countries/regions looking to source rare earth materials from Australia and may encourage additional investment in mid-and downstream processing.
This project will be the first major project constructed in the Northern Territory since development of the Ichthys LNG Project by INPEX in 2018.
Public Benefit
Independent analysis has concluded that the Nolans Project represents important benefits for the local Northern Territory economy. Its development brings significant opportunity to the NT in the form of training and development, local business procurement, regional income and the payment of community benefits.
The forecast benefit of the project to the NT is $1,433m which includes an estimated Gross Territory Product (GTP) benefit of $828m (net of greenhouse gas emission cost) over construction and a 20-year operational life.
The Arafura Nolans Bore Rare Earths Project will deliver significant economic and community benefits, with a strong focus on local and Indigenous participation. The project is expected to generate hundreds of direct and indirect jobs, including a peak workforce of around 620 during construction and approximately 280 ongoing roles during operations. As the first rare earths separation plant in Australia, it is a key contributor to the Territory’s economic development and a strategic asset in expanding Australia’s critical minerals industry.
Indigenous Engagement
- The Anmatjere people
Anmatjere Country, located in Central Australia, north of Alice Springs, connecting to local communities of Ti Tree, Pmara Jutunta, and Laramba. The area is home to diverse desert communities, where Warlpiri, Anmatjere, and Eastern Arrernte are key languages spoken alongside English. Whilst each language is different, nearly all Aboriginal people living in the region can understand each other and are usually fluent in several languages. The Central Land Council (CLC) are the representative body for the Anmatjere Traditional Owners and play a key role representing Traditional Owners across the southern half of the Northern Territory – their responsibilities are grounded by the Aboriginal Land Rights (Northern Territory) Act 1976 and the Native Title Act 1993.
Indigenous Engagement Strategy Commitments
- Committed to ongoing engagement with the Anmatjere Traditional Owners and the Central Land Council (CLC) to establish culturally appropriate governance and communication frameworks throughout the project's lifecycle.
- Deliver cross-cultural training for its workforce, guided by the CLC and Traditional Owners, and is exploring flexible employment arrangements to accommodate cultural obligations.
- An aspirational goal of 20% local First Nations employment, supported by targeted training programs, a Graduate Development Program, and school-based apprenticeships.
- Conduct a skills audit to assess the readiness of local Aboriginal communities for employment, followed by the creation of a coordinated training and recruitment calendar.
- Collaborate with the CLC, Central Desert Regional Council (CDRC), and the Northern Territory Indigenous Business Network (NTIBN) to identify and support micro-business ventures led by Traditional Owners and local First Nations businesses.
- Contribute to local cultural events, educational programs, health and well-being initiatives, and leadership development activities, aiming to strengthen community ties and support cultural heritage.
Indigenous Engagement Strategy Outcomes
- Arafura are yet to commence reporting on their Indigenous Engagement Strategy commitments.
